Tuesday, January 26, 2010

Haiti Earthquake Relief Contributions Deductible in 2009

On January 22nd, President Obama signed into law H.R. 4462, which allows taxpayers to claim a charitable contribution on their 2009 tax return for cash contributions given through March 1, 2010, dedicated to Haiti earthquake relief. The law does not extend to the donation of noncash items dedicated to relief efforts. The contributions may be deductible either on the 2009 tax return or on the taxpayer's 2010 tax return.

This new law will require charitable organizations to clearly indicate on donor receipts the contributions received for Haiti relief efforts. Additionally, the contributions for Haiti relief efforts will need to be separately stated on any cumulative or year end receipts issued at the close of 2010.

As a reminder, all contributions of $250 or more are required to be documented with a qualifying receipt including the following:

the date the receipt is issued

the name and address of the donor

a listing of the charitable contributions

a statement indicating that no goods or services were given in exchange for the contribuitons

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About Me

I am a CPA with 30 years of experience working with nonprofit organizations in areas of tax compliance for both federal and state issues. I am the sole shareholder of Sommerville & Associates, P.C. located in Arlington, Texas. I am a frequent speaker for the Texas Society of CPAs, The Church Network and an instructor for the AICPA.